Transcript of Please my customers How do I do more with less and still please my customers Lean/Six Sigma For Pass...
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- please my customers How do I do more with less and still please
my customers Lean/Six Sigma For Pass Bureau Association Presented
by Michael Ryer Frontier Airlines Continuous Improvement Manager
(Retired)
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- Heres what I do for fun Lean/Six Sigma For Pass Bureau
Association
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- I live in a tornado A pass bureau manager told me: We need to
streamline our process, do more with less. We are pulled in 10
directions at one time. We receive a pass request and work them in
date order. We have to touch one 4 to 5 times to see why its
sitting in the mailbox. Agents attach their name to it and it sits
until the more urgent ones are processed. Occasionally some are
missed because the timed out. We have the same deal with company
business (COBUS) travel. We work them by date, not when weve
received them, so we may miss one thats been here a long time, or,
the flight is full by the time we get to it. With COBUS, we may get
the air done and hotel and car are still pending. We set it aside
and start the next one. Then we have to determine if the hotel
and/or car has confirmed and which employee the confirmation was
for. Lean/Six Sigma For Pass Bureau Association
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- In the beginning was the Plan And then came the assumptions and
the assumptions were without form and the Plan was completely
without substance and the darkness fell upon the faces of the
workers. The workers spoke amongst themselves, saying, This Plan is
a crock of crap and it stinketh! And the workers went unto their
supervisors and sayeth unto them, It is a pile of dung and none may
abide the odor thereof! And the supervisors went unto their
managers and sayeth unto them, It is a container of excrement and
it is very strong such that none may abide it. And the managers
went unto their directors and sayeth unto them, It is a vessel of
fertilizer and none may abide its strength. And the directors went
unto their vice presidents and sayeth unto them, It contains that
which aids plant growth and is very powerful, indeed. The vice
presidents went before the president and the chairman and sayeth
unto them, This powerful new plan will actively promote the growth
and efficiency of the company and this product line in particular.
And the leaders looked upon the Plan, saw that it was good and it
became POLICY.
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- Lean/Six Sigma For Pass Bureau Association Big Picture of
Lean/Six SigmaWhat is it? Improvement Emphasis Time Reduced Costs
(COQ*) Over Time
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- Lean/Six Sigma For Pass Bureau Association Big Picture of
Lean/Six SigmaWhat is it? Improvement Emphasis Time Reduced Costs
(COQ*) Over Time Drive Out Waste Identify Waste Five S Lean Tools
and Techniques
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- Big Picture of Lean/Six SigmaWhat is it? Lean/Six Sigma For
Pass Bureau Association Drive Out Waste Identify Waste Five S Lean
Tools and Techniques Drive Out Variation Process Control Six Sigma
Tools Improvement Emphasis Time Advanced Quality Systems Oversight
Reduced Costs (COQ*) Over Time *Cost of Quality
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- Lean/Six Sigma For Pass Bureau Association Boeing Commercial
Aircraft View of Lean, but, it is not just for manufacturing Lean
Business Strategy Develop and Deploy a Lean Strategy to Ensure Lean
Gains Lead Time Minimize Lead Time for Operational Flexibility On
Time Delivery Use of Kanban Use Kanban and Build to Customers
Demand Schedule E-Commerce Data Links for RFQ, Production and
Billing to Ease Information Flow Standard Work Flow Use Takt Time,
Standards and Continuous Improvement for Best Work Flow Set-Up
Reduction Use Pallets, Shadow Boards and SMED to Speed Through Put
Visual Management Production Status Available at a Glance for
Exception Management Total Productive Maintenance Data Driven
Equipment, Tooling and Machine Maintenance for More Up Time Method
Sheets Optimize Method Sheets and Illustrate Entire Operation to
Reduce Confusion 5-S (6-S adds Safety) Sort, Straighten, Shine,
Standardize and Sustain Operational Efficiency Lean Element Desired
Characteristics Deliver the Right Part, at the Right Time, to the
Right Location, in the Right Packaging to Meet Customer Inventory
Requirements
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- What is Lean/Six Sigma? W. Edwards Deming and 14 step
methodology Goal Post Mentality Variation Standard Deviation Waste
DMAIC Data Management We are pleasure/pain animals. If I have pain,
I want to move away from it. Lean/Six Sigma helps define what is
causing me pain and helps build a repeatable methodology to avoid
it. To do this, I need to talk about some things: Lean/Six Sigma
For Pass Bureau Association
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- Does it work? Boeing Aerospace - Reduced billing errors to
zero, billing cycle time from 20 days to 3, reduced technical order
processing time by 50% PIE Trucking - Reduced freight bill errors
from 10% to 1% and improved productivity 30% US Department of
Education - Reduced application processing time for certifying
higher education institutions by 20% Virtua Health Care Clinic -
Streamlining payroll process errors reducing rework by 78%,
decreasing over-processing by 58%, and saving $3,000 in paper
costs. Frontier Airlines Developed centralized weight and balance
program. Saved $750 M in first year. Avoided major FAA LOI fine.
Lean/Six Sigma For Pass Bureau Association
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- Demings 14 Points 1. Create a constancy of purpose toward
improvement of product and service 2. Adopt a new philosophy about
responsibility and leadership 3. Cease dependence on inspection to
achieve quality 4. End the practice of awarding business to the
lowest bidder. Instead, minimize your cost. 5. Improve processes 6.
Institute training on the job 7. Adapt and institute leadership 8.
Drive out fear of change 9. Break down barriers between departments
10. Eliminate slogans, exhortations and targets for the work force
11. Eliminate quotas for the workers and numerical goals for
managers 12. Remove barriers robbing people of pride in workmanship
13. Provide education and self improvement for everyone 14. Put
everyone in the company to work to accomplish transformation
Lean/Six Sigma For Pass Bureau Association
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- Goal Post Mentality or if its in specification, its good to go!
LSLUSL Target Value Lean/Six Sigma For Pass Bureau Association
JUNK
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- What is variation? Cause and Effect-The notion of the
predictability of something happening when a known set of
circumstances are present Common Cause-Differences in the outcome
of a process which are attributed to random happenings. Examples of
common cause variation are: Floods Strikes Elections Assignable
Cause-Differences in the outcome of a process attributed to a
specific happening. Examples of assignable causes of variation are:
People Process Material Machine Measurement Environment Lean/Six
Sigma For Pass Bureau Association
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- Six Sigma is really about Standard Deviation Standard
Deviation-Measures and quantifies variation. Its in the same units
as the data TripBooking Time 115.00 25.00 325.00 4120.00 56.00
624.00 738.00 8147.00 961.00 1043.00 AVEREAGE48.40 SIGMA45.92
TripBooking Time 17.00 29.00 36.00 48.00 55.00 6 78.00 87.00 910.00
104.00 AVEREAGE6.90 SIGMA1.81 Lean/Six Sigma For Pass Bureau
Association Same flights but different processing times. Which
process is more in control? Not CapableCapable It is all
aboutWASTE
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- WASTE We want to reduce WASTE over time Lean/Six Sigma For Pass
Bureau Association USL Target LSL Over the long haul, we want less
of this! Over the long haul, we want more of this! Performance Time
UCL LCL Continual Improvement
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- WASTE Lets define WASTE There are defined kinds of waste:
Waiting - for anything or anyone Excess Motion - motion or movement
should add value to the product or service Conveyance -
transporting farther than necessary, temporarily locating,
restacking, or moving parts, people, and information
Correction/Rework fixing junk Over-production - producing more that
required or producing too soon Inventory - too much of anything is
waste; anything unneeded is waste Processing - things the customer
does not want nor recognize Lean/Six Sigma For Pass Bureau
Association
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- WASTE Talk about a revolutionRemoving WASTE C=P+W+C+VC=P+W+C+V
Lean/Six Sigma For Pass Bureau Association P = The pain of making a
change W = The willingness of the folks in the process to make a
change C = The cost, real and imagined, of making the change V =
The vision of what the world will look like after the change Change
is hard and it can be managed!
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- WASTE How do we get rid of WASTE? DMAIC is an acronym for:
Define What is the problem, what is the existing process like, what
does perfection look like? Measure How big is the problem, how
often does it happen, what is the impact when it does happen, how
does the process work without the problem? Analyze What does the
data tell me about the problem? Improve What can I do to reduce or
eliminate the problem? Control How do I make sure the problem never
comes back? Lean/Six Sigma For Pass Bureau Association
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- First, we need to define our process Lean/Six Sigma For Pass
Bureau Association Process Feed Back InputOutput Boundary
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- Define Customer Interfaces Lean/Six Sigma For Pass Bureau
Association 123 This is the boundary between two processes. Process
1 generates products (deliverables) which feed into Process 2. The
speed of delivery, quantity and quality are critical at this point.
Feedback occurs across this interface to ensure Process 1 makes
what Process 2 needs and Process 2 tells Process 1 if it is okay. S
I P O C
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- How do we define the process? 1. Process Documentation 2.
Identify areas where the process is not being followed Differences
due to error? Differences due to personal preference? Differences
due to doing it a better way? 3. What would happen if the process
were run as designed? Lean/Six Sigma For Pass Bureau
Association
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- Found some problems? Clean up em up with Five S Lean/Six Sigma
For Pass Bureau Association The Five Ss are 1. Sort Segregate and
discard un-needed stuff in the process area 2. Straighten Arrange
and identify the needed things for the process 3. Shine Keep the
process area neat and orderly on a daily basis 4. Standardize Run
the process the same way, everyday 5. Sustain Do not let the
process slip back into old ways
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- How do measure the process? In God we trust, all others bring
facts Lets go see if what we think is a problem, really is a
problem. Data Gathering Tools: Process Map Process Audits Time
Motion Studies Review of Historical Data Review of Quality Problems
Lean/Six Sigma For Pass Bureau Association
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- How do we analyze all this data? Lean/Six Sigma For Pass Bureau
Association WASTE PeopleProcess MachineMaterial Goal = Reduce Waste
Environment Measurement
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- How do we select what to improve? Sorting the trivial many from
the significant few Multi-Voting Bang for the buck and return on
investment Best ROI is 18 to 24 months Easy or Hard Low hanging
fruit versus planting a new orchard PDCA/SDCA Define new
performance requirements and how to get there and then how to
sustain the new process Lean/Six Sigma For Pass Bureau
Association
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- How do we control the new process? Capability analysis through
audit and customer satisfaction Capture the process and keep it
whole Mistake Proofing Standard Procedures Responsibility Audits
Financial Analysis Did we save any time and money? Lean/Six Sigma
For Pass Bureau Association
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- Where do we look for the next improvement? We have learned how
to systematically look at our process We have established
performance measures and metrics the process is capable of
producing We focus on our customer needs and the airline needs for
an efficient (no waste) and effective (meets internal and external
customer requirements) process Lean/Six Sigma For Pass Bureau
Association
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- Tha, Tha, Thats all folks
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- References The Black Belt Memory Jogger GOAL/QPC Lean Thinking
- Womack and Jones Quality is Free Cosby What is Six Sigma Pande
and Holpp Juran on Leadership for Quality Juran Schaums Outline
Series, Statistics - Spiegel The Goal Goldratt Teaching the
Elephant to Dance - Belasco Lean/Six Sigma For Pass Bureau
Association